Question 48 Chapter 2 of +2-Part-1
48. (Profit and loss appropriation a/c) A, B and C are partners in a firm with capital contribution of Rs.1,00,000, Rs.75,000 and Rs.50,000 respectively.
Their partnership agreement provides for the following:
(a) Interest on capital to be allowed @10% p.a.
(b) B and C are each to be paid salaries @ 1,000 p.m.
(c) A is to be paid a commission of 10% of the net profit.
The net profit of the year ended 31st December 2018 was Rs.1,25,000.
Profits are shared equally. You are required to prepare the Profit and Loss appropriation account for the year ended 31st December 2018.
The Content covered in this article:
The solution of Question 48 Chapter 2 of +2 Part-1: –
|Profit and Loss Account A/c
|To Interest on capital – A||10,000||By net profit||1,25,000|
|To Salaries – A (1000*12)||12,000|
|To Commission (10% on 1,25,000 )||12,500|
|To Net profit transferred to Capital a/cs|
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Also, Check out the solved question of previous Chapters: –
Usha Publication – Accountancy PSEB (Class 12) – Volume I – Solution
- Chapter No. 1 – Accounting Not for Profit Organisations
- Chapter No. 2 – Partnership Accounts – I
- Chapter No. 3 – Partnership Accounts – II (Introduction)
- Chapter No. 4 – Partnership Accounts – III (Goodwill: Nature and Valuation)
- Chapter No. 5 – Partnership Accounts – IV (Reconstitution of Partnership)
- Chapter No. 6 – Partnership Accounts – V (Admission of A Partner)
- Chapter No. 7 – Partnership Accounts – VI (Retirement and Death of A Partner)
- Chapter No. 8 – Company Accounts (Share Capital)
- Chapter No. 9 – Company Accounts (Issue of Debentures)
- Chapter No. 10 – Company Accounts (Redemption of Debentures)
Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution
- Chapter No. 1 – Financial Statements of a Company (Balance Sheet Only)
- Chapter No. 2 – Techniques of Financial Statement Analysis
- Chapter No. 3 – Ratio Analysis
- Chapter No. 4 – Cash Flow Statement